[Congressional Record Volume 142, Number 79 (Monday, June 3, 1996)]
[Senate]
[Page S5671]
From the Congressional Record Online through the Government Publishing Office [www.gpo.gov]




                      NATIONAL SMALL BUSINESS WEEK

  Mr. PRESSLER. Mr. President, this year National Small Business Week 
will be held from June 2 to June 8. This week is a fitting opportunity 
for us to recognize the contributions of the many entrepreneurs in our 
country and reassess policies affecting small businesses.
  It has been said many times over, but small businesses really are the 
heart of our small towns and cities. A full 99.9 percent of businesses 
in South Dakota are small businesses. In fact, we have only 25 
businesses in the State that employ more than 500 people. Entrepreneurs 
in the local cafe, gas station, hardware store, and pharmacy provide 
essential services and cohesion for our communities. Farmers and small 
business people too, contribute to the community. Together, these 
leaders are the key to our economic strength.
  Small businesses operate against overwhelming odds. Burdensome 
regulations and paperwork, onerous taxes, inadequate access to capital, 
and excessive litigation all are barriers to success. Congress made 
good progress earlier this year by passing the Small Business 
Regulatory Relief Enforcement Fairness Act, which instituted judicial 
review of regulations. This is a step in the right direction. We should 
continue on this track and enact workplace safety and Fair Labor 
Standards Act reforms. I recently spoke with Clark Sinclair, who owns a 
furniture store in Madison, SD, about the need for flexibility in 
awarding either earn comp time or overtime. This flexibility would be 
beneficial for both employees and business owners.
  Business men and women should be free to operate without fear that 
their livelihood is in jeopardy due to unreasonable Government 
regulation and enforcement. Karla and Richard Hauk are prime examples 
of the obstacles small business owners face today. The Hauks recently 
constructed a Days Inn in Wall, SD, believing they complied with the 
Americans with Disabilities Act. The Department of Justice filed suit 
against them even as the Hauks made goodfaith efforts to negotiate and 
comply with the law. Government should work constructively with law-
abiding business owners like the Hauks and help them meet legal 
requirements.
  Our tax policy also consistently works against small firms. The 
current estate tax system is a good example. I am proud to have worked 
with Senator Dole on a reform proposal that would alleviate the heavy 
burden of estate taxes on small family-owned businesses. Currently, 
estate taxes are so onerous that the inheritors are frequently forced 
to sell all or part of a family business simply to pay off the taxes. 
This tax can reach as high as an overwhelming 55 percent of the total 
value of the business. Many families must sell off all or part of their 
business or farm just to pay the estate tax. That is wrong.

  Congress also should increase the deductibility of health care 
insurance for the self-employed, increase expensing, and reduce the 
overall tax burden on small businesses. Many small business owners file 
personal tax returns for their businesses. Thus, thanks to the Clinton 
budget plan, many sole proprietorships pay a higher tax rate than the 
largest corporations in the Nation. Take a business like Malloy 
Electric in Sioux Falls. Gary Jacobsen employs 65 people but cannot 
hire more employees because of the high tax burden. This is a business 
that has been a cornerstone of the community for 25 years, and yet the 
Government continues to tie their hands.
  Despite these obstacles, entrepreneurs strike out on their own--and 
succeed. I would like to recognize the 1996 South Dakota Small Business 
Persons of the Year, DeLon and Janice Buttolph, of Labelcrafters Inc. 
in Sioux Falls. The Buttolph's custom label printing business started 
in 1987 with just one employee and one small contract. Now, 
Labelcrafters runs two shifts with 24 employees and continues to grow. 
The company has received national recognition for producing 
environmentally friendly labels. As partners in life, as well as 
partners in business, DeLon and Janice have shown that good small 
businesses come from families.
  I also would like to recognize several other South Dakota small 
business persons who have made a difference in our State: Shelly A. 
Knuths, Roscoe Manufacturing Co., Madison--South Dakota Women in 
Business Advocate; Kenneth E. Yager, K.O. Lee Co., Aberdeen--South 
Dakota Small Business Exporter; Terry L. Fredericks, attorney for 
Whiting, Hagg & Hagg, Rapid City--South Dakota Veteran Small Business 
Advocate; Richard B. Vallie, Native American Herbal Tea, Aberdeen--
South Dakota Minority Small Business Advocate; and Mark W. Benson, 
First Bank of South Dakota, Rapid City--South Dakota Financial Services 
Advocate. In addition, Doug O'Bryan Contracting, Inc. of Martin, and 
C&W Enterprises of Sioux Falls, have received the Administrator's Award 
for Excellence for their outstanding performance as prime contractors 
under Federal contract.
  These individuals are today's real heroes. They are creating jobs and 
prosperity in South Dakota small cities and towns. They are overlooked 
too often. This week we should take time to recognize their leadership 
and accomplishments. My congratulations to these and all other South 
Dakota entrepreneurs who daily make a difference.

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